University Cycle Works is a reputable bicycle specialty store that offers retail sales of bicycles, parts, accessories and clothing. It is in a high-traffic area with a focus on universities.
University Cycle Works’ primary market is the university student body. This population usually has a turnover of 25% to 25% per year. The university faculty members and staff make up the secondary market. The greater Metroburg community makes up the tertiary marketplace.
Hubert ‘#8220’ Hub has been the Assistant Manager of University Cycle Works for five-years. Hubert also has seven additional years of retail and service experience in the bicycle industry. Hub first began investigating the ownership of a bike business two years ago, however, the local Metroburg market seemed saturated with shops. Hub approached his boss to discuss the possibility of buying an existing store. Two years of negotiations culminated in the sale of University Cycle Works to Hub, effective July 1, 2001. The goal is to seamlessly transfer ownership. Staff, bike lines and location will remain the same.
Metroburg Business Bank is currently preparing this business plan for presentation to them and their major suppliers of parts, accessories, and new bicycles. A substantial part of the past year’s planning has been negotiations with these suppliers to maintain the current financial agreements as the business changed hands. These negotiations benefited greatly by the good working relationships Hub had developed with the various suppliers’ sales representatives, who advocated on Hub’s behalf. In the meantime, the suppliers have granted provisional continuation of existing terms.
Please Note: This sample plan has been disguised to hide names and proprietary information as well as some financials.
The objectives for University Cycle Works are:
- University Cycle Works continues to deliver the highest quality sales and services.
- Facilitate a smooth transfer of ownership
- Maintain a financially strong business. Validate the trust and advocacy of others for this business purchase.
- Repay the start-up loan provided by family members within the first year.
- Achieve monthly or yearly sales equal to, or better than, the previous year under the former owners.
- This year’s goal is to increase the sales of rainwear and bicycle-specific garments.
- To maintain growth in service and sales, focus marketing on the new student influx.
1.2 Keys for Success
Our prominent and high-visibility location directly adjacent to Metroburg State University has been key to our success as the leading bicycle service provider to the university community.
The continuance of established accounts payable, sales programs, and co-op advertising resources by suppliers of bicycles, accessories, and parts makes the financial plan reasonable and attainable. Without this support, purchasing the business would not be acceptable.
University Cycle Works is a well-respected name that provides continuity for customers, employees, and the owner.
The shop’s employees are just as important as the other items. It is crucial to retain and encourage them. They are the vitality of University Cycle Works. University Cycle Works has built a reputation for building long-term relationships. We want to be part in the university experience by addressing our customers by name.
Leave a Reply